The Pound is coming under increasing pressure at the moment, owing to both poor economic data and concerns surrounding the Brexit and how it’s unfolding.
Despite the UK jobs market being very healthy, and you would have to go back as far as the mid-1970’s to see a jobs market this healthy as the number of unemployed sits at just 4.2%, the Pound is still coming under pressure owing to other factors impacting its value.
This news has done little to boost sentiment surrounding the Pound as wage growth is coming under pressure, inflation is falling and the UK Prime Minister, Theresa May is struggling to push through her Brexit plan.
There is a clear split in the Brexit camp and last night, May narrowly escaped defeat in the House of Commons that many think would have led to a vote of no confidence. Should her position come under pressure I think we expect to see the Pound fall further, as it’s now late in the process and the UK is running out of time to agree the plan amongst its own government before even putting forward the plans to the EU.
Data is light for the remainder of the week, so I expect the GBP/EUR rate to be driven by Brexit related news and also whether or not the expected rate hike from the Bank of England in August.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on firstname.lastname@example.org and I will endeavour to get back to you as soon as I can.